The financialization of Chinese commodity markets

Price overreactions in the commodity futures market: An intraday analysis of the Covid-19 pandemic impact

“… Nguyen et al (2020) indicate that although gold futures are typically seen as a hedge against unfavorable fluctuations in the stock market, the majority of commodity futures appears to be treated as a separate asset class in line with their increasing financialization. In addition, Yang et al (2020) show that the energy futures market plays a leading role in the integration between commodity and stock markets. This heterogeneity among different types of commodities motivates us to consider 20 different commodity futures to be able to examine whether the price overreaction behavior differs among different commodity categories.…”

The tail dependence structure between investor sentiment and commodity markets

“…The increase investment in commodities by financial investors (e.g. swap dealers and money managers) placed a greater importance on commodity futures exchanges as an asset class and led consequently to the financialization of commodity markets (among many others; see, Henderson et al (2015) ; Adams and Glück, 2015 ; Gao and Suss, 2015 ; Charlot et al, 2016 ; Algieri and Leccadito, 2017 ; Nguyen et al, 2020a , b ; Yang et al, 2020 ; Ali et al, 2020 ). 1…”

Public attention, oil and gold markets during the COVID-19: Evidence from time-frequency analysis

“…Numerous studies have established that the crude oil and gold markets exhibit clear financial features and that they are inextricably linked (see, for example, Zhang and Wei, 2010 ; Tiwari and Sahadudheen, 2015 ; Yang et al, 2020 ), particularly during times of economic upheaval ( Nissanke, 2012 ; Oztek and Ocal, 2017 ; Junttila et al, 2018 ; Tanin et al, 2022 ), such as the economic turmoil caused by COVID-19 pandemic. For example, Dutta et al (2020) , Gharib et al (2021) and Salisu et al (2021) demonstrate gold has hedging effectiveness against risks related to crude oil, notably during the pandemic period.…”

“…A large amount of evidence has shown the crude oil and gold markets have obvious financial characteristics and there is a close interaction between them ( Zhang and Wei, 2010 ; Tiwari and Sahadudheen, 2015 ; Yang et al, 2020 ; among others), particularly during economic turbulence ( Nissanke, 2012 ; Oztek and Ocal, 2017 ; Junttila et al, 2018 ; Tanin et al, 2022 ). This could be because they have some common influencing elements.…”